CES Exchange Timelines & Deadlines 1

Question 1

How many calendar days does a taxpayer have to identify replacement property after closing on the relinquished property?

Accepted Answer

45 days

Answer

The taxpayer has exactly 45 calendar days from the closing of the relinquished property to identify potential replacement properties.

Question 2

How many calendar days does a taxpayer have to close on replacement property after transferring the relinquished property?

Accepted Answer

180 days

Answer

The exchange period is 180 calendar days from the date of transfer of the relinquished property.

Question 3

If a taxpayer's 180th day falls on a Sunday, when must the exchange close?

Accepted Answer

The Sunday itself (no extension)

Answer

The 180-day deadline is absolute — it does not shift for weekends or holidays, and the exchange must close by that date.

Question 4

What happens if a taxpayer's tax return due date (including extensions) falls before the 180th day of the exchange period?

Accepted Answer

The exchange period ends on the tax return due date, whichever is earlier

Answer

The exchange period ends on the earlier of 180 days after the relinquished property closing or the due date of the taxpayer's tax return (including extensions).

Question 5

Can a taxpayer extend the 45-day identification period for any reason?

Accepted Answer

Yes, if a natural disaster has been federally declared

Answer

The IRS may extend the 45-day identification period in cases of presidentially declared disasters, but not for ordinary circumstances.

CES - Certified Exchange Specialist Practice Test

CES - Certified Exchange Specialist Practice Test

CES Exchange Timelines & Deadlines 1